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Reorganisation anticipate that creditors’ claims which gradually be satisfied whilst the debtor’s facility is kept operational, with measures in place for the rehabilitation of its financial management.
Reorganisation may be used to deal with the insolvency or impending insolvency of debtors who are business entities. In this situation, it is the facility that is reorganised. It is usually expected that creditors’ claims will gradually be satisfied while the debtor’s facility remains operational, secured by measures to rehabilitate the facility’s financial management under a reorganisation plan approved by the insolvency court. Creditors run ongoing checks on how the plan is progressing.read more
Reference to legal acts
Section 316 et seq. of Act No 182/2006 on bankruptcy and the management thereof (the Insolvency Act), as amended
Compliance date: Last checked at 25.11.2020